Update newsletter: July 2010
Message from Trevor Garrett, chief executive
Since the Charities Register opened in February 2007, we have noticed a steady increase in the number of charities – and other visitors – coming to our website to apply to register, file Annual Returns or notify changes to a charity, read our information sheets, or find out more about registered charities and the sector itself:
It is encouraging to see that the website is increasingly becoming the "first port of call" for anyone wanting information about charities.
If you are one of the regular visitors to our website, you will have noticed that we have recently changed its "look and feel" – and that we have made some improvements so it is easier to find the information you need.
The new-look website still has all the information that our old site did – much of it has been updated – and we have added some new material too.
We have also added some new features, to make it easier for you to keep in touch with the Commission and keep up to date with the news.
For example, you can now sign up to receive (or unsubscribe from) our newsletter, and see a calendar of events in which the Commission is participating – both on our homepage.
It's a good idea to check the website from time to time too, to keep up to date with important information for your charity and happenings in the charitable sector.
(And of course, we also urge you to check your own charity's page on the Register regularly, to be sure the information on it is up to date – many more members of the public are now routinely viewing charities' information on the Register.)
We have also expanded the range of information available on the website. For example, we now include "signposts" to materials that you may find useful when setting up a charity, or to help strengthen your charity.
There's much more, besides. Please do take the time to browse the website – I am sure you will find plenty of information that is both useful and informative.
We will keep adding and updating information on the website, and are already planning to trial some new features, that (we hope) will enable you to more easily interact with us.
We've had some very encouraging and positive feedback about the new-look website already, and of course, we continue to appreciate your feedback and suggestions – about the website, or indeed, any other matter.
I warmly recommend that you take a little time to browse around the new website, and add it to your "favourites" so you can easily return to regularly.
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Thank you for coming to the Commission's forums!
The Commission would like to extend a warm "thank you" to all those who accepted our invitations to the sector forums held across the country recently.
The Commission hosted 14 forums, from Invercargill to Whangarei. They were attended by more than 1,650 representatives of registered charities.
We would also to thank the local charitable and volunteer organisations who helped us to organise and promote the forums in their area, and who gave us generous access to their networks and resources.
Building on feedback from earlier events, the forums kept any speechmaking to a minimum, and instead focussed on providing opportunities for charities to network, learn, and ask questions.
At each forum, the Commission, Inland Revenue, and the Office of the Community and Voluntary Sector were on hand to make presentations and answer questions.
They covered the use of the Charities Register, the Commission's monitoring and investigations functions (and their role in maintaining public trust and confidence in the sector), the benefits of non-financial reporting, and payroll giving.
You can see (and hear) the presentations on the Commission's website, and read our information sheet – Telling your story through non-financial reporting
A number of participants have taken the time to provide valuable feedback about how they found the forums, which will help the Commission with its planning for future events. We will send a summary of the feedback to all respondents and will publish it on our website.
The information from the forum attendees will also be used to develop capability-building plans for charities in each of the regions. These plans will be developed by the appropriate regional agencies, with support from the Commission.
A frequently recurring comment from people who attended was that they found the Commission's staff to be friendly and "human".
Other comments were that "I liked receiving clear information about our sector. I've been fulltime in the not for-profit over ten years and finally professionalism is coming through from all levels. Government departments are gaining knowledge, the industry is becoming standardised and the NFP's are being acknowledged. Bravo."
Another participant said "It was a good day. Sometimes you go to these sorts of things and feel you have wasted your time. They can sometimes be more about the presenters and their organisation than the users they are talking to. I didn't feel that and I found some stuff out that was useful."
NOTE: you might like to check the Events page on our website from time to time to keep in touch with the Commission's presentations and speaking engagements.
The next "major" event that the Commission will host is its Annual Meeting, scheduled for Tuesday 30 November, in Auckland. We will publish more details closer to that date.
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You've been asking us….
While at the forums, the Commission kept a record of the questions that we were most frequently asked. Here are two of them, and our responses:
We are an incorporated society. Do we have to file a return with both the Commission and the Companies office?
No. You only need to send an Annual Return to the Charities Commission.
A change to section 23 of the Incorporated Societies Act says that Incorporated Societies that are also registered with the Charities Commission don't need to send an annual financial statement to the Companies Office.
Our information sheet How the Charities Act affects charitable trusts, incorporated societies and companies has more information.
The Maori Land Court has to approve our new trustees. It can take years for that approval to come through. What do we do about advising the Commission about new trustees if the Maori Land Court hasn't yet approved them?
The Charities Act says you must tell us about changes to your officers within three months of the change. In your case, even though approval from the Court is pending you must let us know about any new officers who have come on board (and any that are no longer officers).
Our information sheet Officer certification has details about how to notify a change of officers.
Will Annual Return filing fees increase from $50 (online) or $75 (paper) when GST rises to 15% on 1 October?
Yes. (If a fee is payable) the GST portion of the fee will increase on Annual Returns filed after 1 October 2010. The Charities (Fees, forms and other matters) Regulations 2006 will require us to set the fees at $51.11 (online) and $76.67 (paper), including the new GST rate.
We will remind you about the change to the GST rate in the reminder email we send you before your Annual Return is due.
Note that if your charity (meets the criteria and) is registered for GST, you can claim a tax credit for the GST portion of the fee.
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The Commission has reviewed and updated its Application for registration as a charitable entity – Form 1. In particular, we have removed two questions, making the form a bit shorter and easier to complete.
We have also re-formatted some of the guidance notes, after we noticed that some applicants were writing their answers on the guidance notes themselves, instead of on the "official" part of the form.
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Made any changes you need to tell us about?
If you make any changes to your charity's name, address for service, balance date, rules, purposes, or officers (including new appointments), you must tell us within three months of the changes (or your becoming aware of them).
You can use our Notification of change form – Form 3 to let us know (or log in to your account and complete the form online. (Or, you can report changes as part of your Annual Return, also within three months of the change or your becoming aware of it).
Please make sure you complete all of the questions in the form, including your organisation's name and unique registration number. You must also be sure to have the form signed and certified by the person completing it.
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A gentle reminder – just drop off any cents!
We use the information from Annual Returns to derive data about the charitable sector. All the data in our Snapshot of the charitable sector, for example, comes from the Annual Returns filed by registered charities – and they are also available to the public – so it's important that they're accurate.
When you complete your Annual Return, we would like you to write your figures in whole dollars by simply dropping off any cents. Don't write or type commas or dollar signs. (The new versions of our forms explain this.)
For example:
- If a value is $327,689.55, enter 327689 (You must include the 000s. Don't show this figure as just "327").
Some of you round large figures down, so they look like hundreds rather than hundreds of thousands or millions. For example, if you write "327" the public read that as three hundred and twenty seven dollars. They don't necessarily read it as three hundred and twenty seven thousand dollars.
If the value is less than $1000, simply enter the whole number (remembering to drop the cents).
For example:
- If your income is $834.45, enter 834.
Remember – your information is on the public Register and can be viewed by members of the public – and it can influence the accuracy of data about the overall sector.
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- How the Charities Act Affects your tax status
- Understanding Charities Commission compliance actions
- Telling your story through nonfinancial reporting
We have updated our information sheet Tax and donee status - how the Charities Act affects charitable tax status – you may find it worthwhile to refresh your understanding of your charity's tax and donee status by reading this update.
We have also published two new information sheets. Understanding Charities Commission compliance actions explains the different compliance actions the Commission can take, and the possible results of those actions.
It explains what it means to be "no longer qualified" for registration, "significant or persistent failure" to comply with the Charities Act's requirements, and the meaning of "engaged in serious wrongdoing".
It also explains the various orders the Commission can make to prevent a deregistered charity from registering again for a set length of time, and to prevent an officer of a deregistered charity from being an officer of any registered charity for a set length of time.
(A 'companion" information sheet you might like to read is What you can do if you disagree with our decisions.)
The second new information sheet is Telling your story through non-financial reporting.
Increasingly, the public want to know "what difference is your charity making?" This information sheet outlines some of the benefits and opportunities of answering that question by telling your charity's story through non-financial reporting.
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Handy tip – getting the most from searching the Charities Register
Did you know that one of the easiest ways to search for a charity (or list of charities) is simply to look for a word (or string of letters) that are likely to be in its name?
For example, if you want to look for charities that are likely to be involved in helping people with Alzheimers, try typing in "alzheim" into the Search field:
If you want to narrow the search to a particular area, you could add in a town/city or postcode, or use the drop-down "Area of operation" menu.
The search function is designed to look only for the exact word (or string of letters) you type in, so this technique is especially helpful if you are not sure of the exact legal name under which the charity is registered (or if they have – for example – spelled their name with or without an apostrophe).
The Register's search function looks only at the full legal name under which the charity is registered, and searches only for exact matches to your search term.
It doesn't currently search for abbreviations, acronyms, or names by which the charity might colloquially be known. (For example, to find the TEAR Fund on the Register, search for a string of letters or word from their full legal name, The Evangelical Alliance Relief Fund).
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Making tax easier
The Commission earlier sent an email to all registered charities, to advise you that the government was consulting on changes to the way you deal with Inland Revenue.
The Making tax easier website discusses simplifying Inland Revenue's systems and processes to provide more responsive online services, reduce the amount of paper required, provide tailored support, and reduce compliance costs.
Under the proposals, individuals, non-profits, businesses and employers would manage most of their tax affairs (and social entitlements) online, through their own secure space on the Inland Revenue website, in an approach like internet banking. Rapid responses and confirmation would aid certainty in dealing with tax.
Further proposals cover sharing some information – with appropriate privacy safeguards - with other government departments, to reduce compliance costs and make it easier for people changing employment, going on parental leave, or updating their student loan repayments.
You can learn more and read submissions made on the proposals at the Making tax easier [Link: www.ird.govt.nz/makingtaxeasier] website.
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Volunteer Net
VolunteerNet (www.volunteernet.org.nz) is a new website that connects volunteers with event-based volunteering opportunities. People can register as volunteers and search for event opportunities that match their skills and experience; and event organisers can register and search for volunteers who have the skills and experience they require.
VolunteerNet caters for events of all shapes and sizes including local community events, art and cultural festivals, fundraising drives and special interest events such as environmental, educational and faith oriented events.
The website has been developed by New Zealand Major Events, a unit within the Ministry of Economic Development.
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Sorted in retirement?
Are you (or those your charity is helping) getting the most out of your money in retirement?
The Retirement Commission has produced a new edition of its free booklet, Your Money in Retirement, to help people in their sixties and beyond to take stock of their financial affairs.
You can order copies by calling 0800 SORT MONEY (767 866) or online
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Kia Tutahi – Standing Together - developing a relationship agreement
Kia ora tatou, Talofa lava, Malo e lelei, Kia orana, Fakaalofa lahi atu, Ni sa bula vinaka, Namaste, Ia Orana, Gud de tru olgeta, Talofa ni, Talofa, and greetings to you all.
The Kia Tutahi-Standing Together Steering Group is a joint group of community members and government officials appointed by the Minister for the Community and Voluntary Sector, the Hon Tariana Turia.
The Steering Group has drafted a relationship agreement setting out a vision and principles for how government and communities can work together, and would like to hear your ideas and opinions about its content of (eg: its vision, preamble and principles) and how to make it happen. You can have your say:
- At regional hui around New Zealand (on now until 13 August)
- By making a written submission before 20 August
- By providing your feedback online in the discussion forums
This message is sent out on behalf of the Kia Tutahi Standing Together Steering Group
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Annual Returns filing – "pretty easy when you sat down to do it"
During May, we contacted charities who have completed an Annual Return (online) during the 2010 calendar year, asking them to give us their impressions of the process. We sent an invitation to approx 3,000 charities, and 696 responded.
The survey follows an earlier survey we ran in March 2009, when we first began to receive Annual Returns.
The purpose of both surveys was to gauge any issues charities might be experiencing with completing and filing their Return, and get their feedback (so we can identify any possible improvements to our information and/or process).
People that filed an Annual Return during 2010 told us (in summary) that:
- Almost half of the Annual Returns were filed by charities' bookkeeper/treasurer
- 82% didn't need any professional help to complete the Return
- 89% found it 'OK', 'quite easy' or 'very easy' to complete
- 80% of people took less than an hour to complete the Return, once they'd collated the information they needed
- 90% of people said they found it "OK" "quite easy" or "very easy" to complete the financial information in the form
- There was an even split between people choosing to upload or post their financial statements
- 54% paid the fee by posting a cheque, and 19% paid by electronic banking (27% didn't need to pay a fee, because their charity's gross income was less than $10,000)
- 70% found our reminder email useful (25% said they didn't receive a reminder, most likely because their contact details were incorrect)
Amongst the comments made, the Call Centre received special mention – an example of the feedback was that "I had to utilise more than once your help desk. Those that I spoke to were fantastic and very helpful and patient. I am not used to working tech stuff. They certainly made the process easier, thank you."
The Commission is continuing to use your feedback to make improvements to the Annual Returns process.
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New Zealand Trustees Association invites new applicants
The New Zealand Trustees Association advises that its Trustee Register is open for admission for new applicants.
Trustees seeking to be granted admission should read the introduction before applying to the Registration Board. Applications can be made online
If you have any questions, please email office@nzta.org.nz
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Our registration decisions and Court judgments online
The Charities Commission publishes on its website its written decisions to decline to register applicant organisations and remove charities from the Register.
In doing this, we hope to contribute to greater understanding of the law that governs our decisions, and in particular, the legal meaning of "charitable purpose".
We are also now publishing the court judgments from appeals against our decisions.
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If asked, you must disclose your charity's registration number
The Commission gives each registered charity a unique registration number, which you can display on your promotional material and website. It lets the public know that your charity has met the requirements for registration under the Act.
We encourage you to promote your unique charity registration number, and refer supporters and potential donors to your information on the Charities Register.
Members of the public are entitled to ask fundraisers for this number, and some funders may also ask you for it when you apply to them for funding.
If asked, you (or your online or telemarketing fundraiser) must disclose your charity's registration number (the Charities Act says so!).
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